South Asia: Imported ferrous scrap offers see mixed trends, buying interest subdued

Today, South Asian ferrous scrap prices showed mixed trends, yet buying activity remained sluggish. In India, buyers continued to show disinterest, citing the availability of alternative options in the domestic market and price disparity. In Pakistan, year-end closures and tight cash flows contributed to subdued market sentiments. Meanwhile, the finished steel sector in Bangladesh experienced an impact due to upcoming elections.

Shredded scrap offers decreased by $1-2/t in both India and Bangladesh, while they remained unchanged in Pakistan. US bulk HMS (80:20) offers also held steady in Turkiye.

Market overview

India: Today in the Indian market, lack of buying interest resulted in the absence of firm offers or bids. This can be attributed to the price disparity and the availability of more cost-effective alternatives domestically. Indicative offers from Europe were observed in the range of $415-420/t CFR Nhava Sheva, with HMS (80:20) reported at $395-400/t CFR.

Bulk HMS (80:20) offers from Europe were noted at $440-445/t CFR, but Australian offers, ranging from $425-430/t CFR, proved more attractive to Indian buyers. Despite this, no transactions have been reported thus far.

A buyer mentioned, "Due to the current unfavourable market conditions, we have refrained from booking any fresh materials recently."

Pakistan: In Pakistan, market activities have slowed down as finished steel sales remained sluggish due to year-end closing and tight cash flows. Only a few buyers were seen active as per their needs; otherwise, no major deals were heard today. Shredded scrap offers from Europe were assessed at $425-430/t CFR Qasim.

A representative from a trading company said, "The recent surge in imported scrap prices has dampened interest in the market. As for the outlook, it's uncertain at the moment. I believe we'll gain some clarity after the EU holidays."

A representative from a steel company commented, "Market activities are currently non-existent, and the condition of the domestic steel market is also unfavourable at the moment."

Within the domestic market, local scrap prices were heard in the range of PKR 160,000-170,000/t, billets were heard at PKR 215,000-220,000/t and rebars were heard at PKR 245,000-255,000/t exw.

A steel mill representative shared, "Market prices remained stable compared to last week amidst sluggish demand due to year-end closures and lack of major sales due to tight cash flows. We expect the current situation to persist in the last 10 days of December, with potential improvement anticipated in market conditions during the first to second week of January."

Bangladesh: In Bangladesh, the steel sector and other downstream industries are experiencing a downturn ahead of the January elections, fuelled by concerns about potential government changes and financial losses. Additionally, a limited number of suppliers are active due to winter holidays. Indicative offers for shredded scrap from Europe were noted at $435-438/t CFR Chattogram, and HMS (80:20) was reported at approximately $415-420/t CFR.

Moreover, bulk inquiries have reduced significantly in the period leading up to the election, with a majority of fund flow remaining stagnant.

Turkiye: Turkish imported scrap prices remained steady, with limited buying activity from mills and recyclers holding firm on their offers. After a continuous rise from October to the first week of December, prices remained range-bound around $425/t CFR Turkiye, with suppliers facing resistance from the market for further increases. The slowdown in the market, attributed to weak sales of finished steel, especially rebars, has led to a somewhat bearish sentiment. Steelmakers anticipate a modest $5-10/t downward correction in scrap prices, citing unsatisfactory rebar orders as the primary factor. Despite these factors, a Europe-based recycler holds firm on offers, stating no expectation of softening, with US and EU-origin HMS (80:20) at $420-425/t CFR Turkiye.

Recent deals

Approximately 500 t of shredded scraps were booked from the Middle East at $430/t CFR Qasim

Price assessments

India: The UK-origin shredded scrap indicatives inched down by $2/t to $416/t CFR Nhava Sheva today.

Pakistan: The UK-origin shredded scrap indicatives were kept unchanged at $428/t CFR Qasim today.

Bangladesh: The UK-origin shredded scrap prices were assessed at $435/t CFR Chattogram, down by $1/t d-o-d.

Turkiye: The US-origin HMS (80:20) bulk prices were assessed stable $425/t CFR Turkiye.

Outlook

In the short term, imported scrap offers are expected to remain volatile, influenced by lack of buying interest. Suppliers are also adopting a less firm stance, likely influenced by the holiday mood prevailing in the market.